66 CapitaLand Ascott Trust Board Matters Principle 1: The Boards’ Conduct of Affairs Boards’ Duties and Responsibilities The Boards’ primary responsibility is to foster CLAS’ success so as to deliver sustainable value over the long term. The Boards oversee the Managers’ strategic direction, performance and affairs and provide guidance to the management team (Management), led by the Chief Executive Officer (CEO). The Boards work with Management to achieve CLAS’ objectives, and Management is accountable to the Boards for its performance and the execution of CLAS’ strategy. The Boards establish goals for Management and monitor the achievement of these goals. The Boards ensure that proper and effective controls are in place to assess and manage business risks and compliance with the Listing Manual, Property Funds Appendix, and other applicable laws and regulations. Written Boards approval limits have been established, which are communicated to Management, setting out matters which require their approval, including written financial approval limits such as capital expenditure, investments, divestments and bank borrowings. The Boards delegate authority for transactions below those limits to Board committees (Board Committees) and Management for operational efficiency. Directors are fiduciaries and are obliged at all times to act objectively in CLAS’ best interests. This sets the tone at the top on the desired organisational culture and ensures proper accountability within the Managers. The Boards have adopted a Board Code of Business Conduct and Ethics which provides for every Director to adhere to the highest standards of ethical conduct and to avoid conflicts of interest. Each Director is required to disclose to the Boards his/her interests in CLAS’ transactions (or potential transactions), and any other potential conflicts of interest, recuse himself/herself from deliberations and abstain from voting on such transactions. In FY 2025, every Director complied with this policy, and such compliance has been recorded in the minutes of meeting or written resolutions. Sustainability The Managers are committed to growing our business in a responsible manner, delivering long-term economic value, and contributing to the environmental and social well-being of the communities in which we have a presence. In keeping with this commitment, sustainabilityrelated considerations are key aspects of the Boards’ strategic formulation. At the board level, in recognition of the importance of sustainability as a business imperative and consistent with the principle that the Boards play an important role in considering and incorporating sustainability considerations as part of its strategy development, an important consideration is ensuring that Environmental, Social and Governance (ESG) risks and opportunities are holistically integrated into and form the Managers’ longterm strategy. This also sets the tone at the top to ensure the alignment of the Managers’ activities with its purpose and stakeholder interests. The Boards and the Managers are committed to ensuring environmental and workplace health and safety for their stakeholders, including employees and customers. CLI’s Environmental, Health and Safety Management System is audited by a third-party accredited certification body to ISO 14001 and ISO 45001 standards, internationally recognised standards for the environmental management of businesses and occupational health and safety management of businesses respectively. CLAS’ health and safety practices are also aligned with the Code of Practice on Chief Executives’ and Board of Directors’ Workplace Safety and Health Duties. CLI’s Environmental, Health and Safety policy is readily available to employees and to all suppliers, service providers and partners. Corporate Governance All the members of the Boards attended the sustainability training as prescribed by the SGX-ST. New Directors who are appointed to the Boards from time to time who have not undergone training on sustainability matters as prescribed by the SGX-ST will either have expertise in sustainability matters or will undergo further training required under Rule 720(7) of the Listing Manual. More details of CLAS’ sustainability approach, environmental policies, anti-corruption efforts, training and development can be found in CLAS’ Sustainability Report 2025 which will be published in May 2026. Directors’ Development The Nominating and Remuneration Committee (NRC) ensures that the Managers have a training framework to equip Directors with the necessary knowledge and skills to understand CLAS’ business and discharge their duties and responsibilities as Directors (including their roles as executive, non-executive and independent directors). Directors, including those who have no prior experience as a director of an issuer listed on the SGX-ST, will undergo Corporate Governance
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